# Tokenized deposit

A tokenized deposit is a commercial bank deposit represented as a blockchain token: it stays on the issuing bank's balance sheet, remains a claim on that bank, and moves between the bank's customers programmatically, extending payment availability toward 24/7 without changing the nature of the money.

## Why tokenized deposits matter for cross-border payments

Tokenized deposits preserve the two-tier monetary system: money stays commercial bank money, final settlement continues through existing arrangements such as RTGS, and banks gain programmable, always-on transfer between participants.

Taurus has integrated smart contracts for bank-issued tokenized money on permissioned Hyperledger Besu infrastructure, enabling institutions to connect to Swift ledger for 24/7 cross-border payments.

FAQ:

- Do tokenized deposits replace payment systems? No. They extend availability and programmability at the customer-facing layer while final interbank settlement continues through existing mechanisms such as RTGS systems. The deposit never leaves the banking system.

Related: https://www.taurushq.com/swift-ledger/ https://www.taurushq.com/glossary/stablecoin/ https://www.taurushq.com/capital/

Learn more: https://www.taurushq.com/glossary/tokenized-deposit/